Volterra Semiconductor

Transcription

1 Silicon Power Solutions Volterra Semiconductor Jefferies 2013 Conference May 7, 2013 Mike Burns, CFO Nasdaq: VLTR

2 Safe Harbor Statements This presentation contains forward-looking statements based on current expectations of Volterra. The words expect, will, should, would, anticipate, project, outlook, believe, intend, and similar phrases as they relate to future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Volterra but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Such risk factors are detailed in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed on March 5, 2013 for the year ended December 31, Volterra assumes no obligation to update these forward-looking statements. This presentation includes non-gaap financial measures. You can find the most directly comparable GAAP financial measures and a reconciliation of the differences between these non-gaap financial measures and the most directly comparable GAAP financial measures on our website at 2

3 Volterra Investment Highlights Large, growing power management opportunity Advanced power management leader with proprietary technology Diverse markets and applications Blue chip customers Attractive financial model 3

4 Large, Growing Power Management Opportunity Discrete $200 Revenue $M $168M Integrated $100 $0 VLTR IPO Integrating power components and growing rapidly 4

5 Large, Growing Power Management Opportunity Server & Storage $101M revenue 2012 $500M 2017 SAM Brickland Grantley Networking & Comms $10M revenue 2012 $400M 2017 SAM Increased focus Design wins up 75% Portable & Consumer $57M revenue 2012 Reduced 2017 SAM Shifting resources Reducing exposure Energy - Solar First revenue 2013 $700M 2017 SAM Embedded in panel Increased energy Focusing on large and growing markets 5

6 Advanced Power Management Leader Powered 100kV 120V 12V by Volterra 1V Delivering advanced voltage regulation for digital ICs 6

7 Advanced Power Management Leader Conventional discrete power Volterra s integrated power Offering smaller, higher performance, more energy efficient 7

8 Advanced Power Management Leader Gen 6 on.35 micron CMOS - Romley servers Gen 7 on.18 micron CMOS Brickland & Grantley Gen 8 in product design Gen 9-11 in Advanced R&D Density Power Dissipation Cost-Effectiveness Gen 1 Gen 11 Gen 1 Gen 11 Gen 1 Gen 11 Accelerating improvements in performance 8

9 Diverse Markets and Applications: Server Focusing on higher margin opportunities in cloud computing Enabling highest density and best performance/watt 9

10 Diverse Markets and Applications: Comms Demand for Data Continues to Grow Exponentially Data Processing Capability Doubles Every 2 Years Biggest Challenges: Size, thermal management and accurate telemetry Solution: Our Integrated Power Technology Benefiting from communications industry trends 10

11 Diverse Markets and Applications: Energy Volterra solar energy harvest ICs Up to 20% increase in energy harvest Being adopted by leading solar panel manufacturers On track for first revenue in 2H 2013 At or above corporate gross margin VLTR chips within panels. Weak cells no longer limit production of the system Leveraging technology into new areas 11

12 Diverse Markets and Applications: Energy Acquired pre-revenue startup Element Energy Improves performance, lifetime & cost of large battery packs Combining Element architecture with Volterra technology Doubles pack life, improves run time, reduces charge time Expands 2017 SAM by $1.5 Billion Stationary and renewable energy storage Hybrid and electric vehicles Developing first commercial silicon this year Leveraging technology into new areas 12

13 Blue Chip Customers Server & Storage Portable & Consumer Networking & Comms Serving an expanding list of blue chip customers 13

14 Blue Chip Customers Large Competitors Networking & Comms Server & Storage Portable & Consumer Competing successfully against large discrete solutions 14

15 Attractive Financial Model Growth %: Long Term Model Rev Growth 1% 46% 2% 8% Profit %: Gross Margin 60% 62% 58% 58% 55-60% R&D 23% 21% 22% 23% 18-22% SG&A 17% 14% 14% 13% 12-15% Litigation 5% 4% 3% 2% --- Op Margin 16% 23% 19% 20% 22-26% Note: profit %s are non-gaap % of revenue Executing consistent with operating model 15

16 Attractive Financial Model Q1 13 Metric Cash $152M $6/share Receivables $22M 49 days Inventory $18M 96 days Debt $0M n/a Equity $194M $8/share Maintaining healthy balance sheet 16

17 Volterra Investment Highlights Large, growing power management opportunity Advanced power management leader with proprietary technology Diverse markets and applications Blue chip customers Attractive financial model 17